Flood Insurance RCV vs ACV

When determining the appropriate amount of flood insurance, we talk about the “lesser of three”.  You have to have enough flood insurance to cover the lesser of:

1) the outstanding principal balance of all loans secured by the property;

2) the insurable value of the property minus the land value; or,

3) the maximum amount of insurance available through the National Flood Insurance Program (NFIP).  When it comes to the “insurable value”, what’s the difference between the Replacement Cost Value (RCV) and Actual Cash Value (ACV)? 

Listen to David explain more.


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